Problem 2 Fixed Asset Theory. Assume that at 1/1/x1 P company sells a piece of equipment to S for $900,000. At the time of the sale, the asset was recorded on P's books as follows: Original Cost -AD NBV $600,000 -$200.000 $400,000 The asset has a 3 year remaining life. 1) How much would be the excess depreciation? 2) What would be the correct depreciation expense for 19x1 3) What would be the correct consolidated asset cost at 12/31/x1 4) What would be the corrected accumulated depreciation at 12/31/x2 Please provide the two consolidation journal entries at 12/31/x2:

Problem 2 Fixed Asset Theory. Assume that at 1/1/x1 P company sells a piece of equipment to S for $900,000. At the time of the sale, the asset was recorded on P's books as follows: Original Cost -AD NBV $600,000 -$200.000 $400,000 The asset has a 3 year remaining life. 1) How much would be the excess depreciation? 2) What would be the correct depreciation expense for 19x1 3) What would be the correct consolidated asset cost at 12/31/x1 4) What would be the corrected accumulated depreciation at 12/31/x2 Please provide the two consolidation journal entries at 12/31/x2:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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